Iran halts petrochemical exports to supply domestic market
Iran has halted exports of all petrochemical products until further notice to prevent shortages of raw materials and stabilize the domestic market, state-linked media reported.
A letter issued by a senior official at the National Petrochemical Company instructed producers to stop exports and redirect supply to domestic industries.
The directive said the move aims to support downstream industries and consumers following damage caused by recent attacks and to ensure adequate supply in the domestic market, the report said.
Freelancers and small business owners say their incomes have collapsed and daily operations have halted during Iran’s prolonged internet shutdown, which NetBlocks said has caused $1.8 billion in losses over 48 days.
“I work as a freelance web developer and my income has dropped to zero because of the internet outage. I am selling my belongings to cover debts,” a citizen wrote in a message to Iran International.
Another said: “As a student and computer technician, I am stuck in uncertainty. Online classes are heavily disrupted, and I cannot even access the internet to complete projects. My workplace has no customers.”
NetBlocks said on Thursday the disruption had lasted 1,128 hours, describing the shutdown as unprecedented in scale for a country with deep reliance on global connectivity. The group added that its estimate, based on its COST methodology, also reflects wider social and human rights impacts.
Digital economy grinds to a halt
The outage has hit Iran’s digital sector, which had absorbed part of the country’s unemployment pressure over the past decade. Online businesses have lost access to customers, payment systems, and essential tools tied to the global internet.
The Rokna news website said on Wednesday the disruption amounted to a shutdown of the digital economy, noting that the cut to international internet access dealt a direct blow to online businesses.
A couple walk in a park overlooking Tehran, with the iconic Milad Tower seen in the background, April 1, 2026.
Hundreds of small digital enterprises have been unable to maintain sales, customer communication, or after-sales services. Layoffs have spread across technology firms and media organizations, affecting employees whose work depends on stable connectivity, the outlet added.
Journalists and media workers have also faced income losses and job cuts as communication channels narrowed and publishing operations slowed, according to the report.
Workers face mounting financial strain
“I managed to connect briefly using expensive VPNs, but I have lost my job due to the internet disruption. I have loans to repay and rent to cover, and many others are in the same situation,” another citizen told Iran International.
Accounts from across the country point to a broader slowdown. “Prices have increased several times over. Many people have lost their jobs. At least 50 percent of shops are closed,” one resident said, adding that only essential services such as repair shops and small markets remain partially active.
Delays in salary payments have become more common in some businesses, increasing pressure on workers already affected by rising prices. Inflation has further reduced real wages, leaving even those still employed struggling to cover basic living costs.
File photo of a young Iranian man who checks his phone outside a store
Professional networks also reflect the downturn. Users on LinkedIn have publicly said they are seeking new job opportunities, indicating a rise in job seekers among skilled and experienced workers.
Experts warn of lasting damage
Economic journalist Arezoo Karimi said the losses extend beyond immediate income declines, warning of wider consequences for employment and growth.
“This means zero income for businesses that depend on international connectivity. It leads to layoffs and rising unemployment,” Karimi said, adding that daily losses run into tens of millions of dollars.
Karimi said the broader economic impact could reach several times the direct losses, pointing to reduced production and slower economic growth. Inflation, already elevated, is likely to worsen if disruptions continue.
“Businesses are not only losing income, they are losing their position in international markets and online visibility. These are damages that cannot easily be reversed,” Karimi added.
With limited access to global markets and tools, many digital workers now face a choice between prolonged uncertainty and leaving the country.
The outage has exposed the dependence of Iran’s digital economy on stable international connectivity, with weeks of disruption enough to dismantle businesses built over years.
Iran has no hopes pinned on negotiations with the United States and does not trust the other side despite entering talks in good faith, an Iranian lawmaker said on Thursday.
Vahid Ahmadi, a member of parliament’s national security commission, said it was now up to the United States to decide whether it was willing to accept Iran’s demands.
The MP said if Washington did not respond positively, Iran would have no hesitation about continuing the war.
“It is now up to the United States to decide whether it can accept Iran’s demands. If it does not, the Islamic Republic will have no hesitation in continuing its course and the war,” he said.
Iran has halted exports of all petrochemical products until further notice to prevent shortages of raw materials and stabilize the domestic market, state-linked media reported.
A letter issued by a senior official at the National Petrochemical Company instructed producers to stop exports and redirect supply to domestic industries.
The directive said the move aims to support downstream industries and consumers following damage caused by recent attacks and to ensure adequate supply in the domestic market, the report said.
Attacks, curbs hit sector
Domestic prices for petrochemical and related products have been held at pre-conflict levels despite rising global prices, officials said, adding the measures would remain in place to support local industry and consumers.
Companies were also told to return export cargoes that have not yet cleared customs, with associated costs to be reported for possible adjustments to domestic pricing.
Key petrochemical hubs in Asaluyeh and Mahshahr have been hit in recent weeks, including strikes on utilities supplying feedstock to plants, disrupting production.
The US military has also begun blocking shipping traffic in and out of Iran’s ports this week, a move aimed at reducing Iran’s export revenues as Tehran and Washington consider a second round of talks.
Economic strain deepens
The measures come as Iran faces mounting economic pressure, with reports sent by citizens to Iran International describing factory closures and layoffs in industrial hubs due to shortages of raw materials and weak demand.
Residents said businesses have struggled with disrupted supply chains and an ongoing internet shutdown, which has further strained operations and added to rising prices.
Internet monitoring group NetBlocks said Iran’s nationwide internet blackout is ongoing at 48 days, with economic losses estimated at about $1.8 billion.
NetBlocks said the disruption has lasted 1,128 hours, describing the censorship measure as unprecedented in scale and severity in a connected society.
The group said the estimate was based on its COST methodology and added that the shutdown has also caused human rights harms.
A senior Iranian official told Reuters that there are growing chances of extending the ceasefire, with hopes rising for a second round of talks.
The official said the Pakistani army chief’s recent visit to Tehran helped reduce differences in some areas.
The official told Reuters that fundamental disagreements remain over nuclear issues, including the fate of Iran’s highly enriched uranium and the duration of nuclear restrictions.
Key issues tied to Iran’s nuclear programme remain unresolved, the official added.
